Starbucks has explored Chipotle takeover, FT reports

Starbucks has reportedly considered acquiring Chipotle Mexican Grill, according to a report by the Financial Times. The potential deal would merge two of the most recognizable names in the US restaurant industry and strengthen Starbucks CEO Brian Niccol's connection to Chipotle, where he established his career before becoming the head of Starbucks.

Sources familiar with the matter told the FT that Starbucks had enlisted advisers to explore a takeover proposal for Chipotle. However, Starbucks and Chipotle have not yet commented on the report.

Chipotle, valued at nearly $39 billion, has seen its shares rise by about 4% in early trading following the news. In contrast, Starbucks, with a market capitalization of around $107 billion, experienced a slight decline of about 3%. Niccol took the reins at Starbucks with the goal of revitalizing the company, focusing on enhancing customer experience through a simplified menu and reduced wait times.

This strategy has led to four consecutive quarters of growth in comparable sales for Starbucks. Meanwhile, Chipotle has been grappling with declining consumer demand and increasing costs due to ongoing inflation.